Stock futures near day's lows; reports disappoint

U.S. stock-index futures turned lower on Wednesday, after the government reported the economy contracted more than expected in the first quarter and orders for durable goods unexpectedly declined in May.

The data had the economy contracting 2.9 percent in the first quarter, and durable goods off 1 percent last month.

"GDP is constantly being revised, so I don't put too much stock in that, but I was expecting durable goods would be picking up. It does not fit with a second-quarter increase in economic activity, so that's kind of a concern," said Paul Nolte, senior vice president, portfolio manager at Kingsview Asset Management in Chicago.

Bed Bath & Beyond—shares in which are down around 27 percent on the year—will report results after Wall Street closes.

The Treasury is scheduled to auction $35 billion in five-year bonds and $13 billion in two-year floating rate notes (FRNs). This follows a somewhat lackluster sale of two-year fixed-rate notes on Tuesday.

Concerns over Iraq continue to weigh on global markets. There is little indication the country's leadership is responding to pressure by foreign leaders to reform government in an attempt to stem the Sunni insurgency. U.S. Secretary of State John Kerry was in Iraq's Kurdistan region on Tuesday, as Iraqi government forces fought militants for control of the country's biggest oil refinery.

The Dow Jones Industrial Average posted its biggest one-day drop in a month on Tuesday, despite a raft of positive data. Consumer confidence surged more than expected in June, new home sales for May rose more than forecast and the S&P/Case-Shiller home price index showed a 10.8 percent annual increase.